The course aims at exploring Private Equity (PE) as an alternative asset class on the rise and will equip the participants with a sound understanding of its characteristics and mechanics.
After outlining Private Equity’s role from an asset management perspective, the course will focus on PE fundamentals (strategy, economics, stakeholders) as well as on detailing the Leverage Buy-out value chain including the sourcing strategy, due diligence, portfolio value creation and exit. There will be a specific emphasis on teaching the LBO mechanics, core due diligence techniques and value creation strategies.
The course will be complemented by several practical exercises, in class discussions, as well as guest lectures from professionals in the Private Equity Industry.
Participants will be able to distinguish Private Equity from other asset classes. In particular, participants understand how to assess and create value from potential investments. Overall, this course will provide participants with practical insights into Private Equity and will equip them with advanced knowledge for a potential career in the industry.
Basic knowledge of Corporate Finance
|Forms of teaching and learning||Contact hours||Independent study time|
|Lecture||2 SWS||6 SWS|
|Case Study Presentation||2 SWS||7 SWS|
|Form of assessment||Case study presentation (50%) and written exam (45 min., 50%)|
Dr. Wilhelm Schmundt
Dr. Wilhelm Schmundt
|Duration of module||1 semester|
|Range of application||M.Sc. MMM, M.Sc. Bus. Edu., M.Sc. Econ., M.Sc. Bus. Inf., LL.M.|
|Preliminary course work||–|
|Program-specific Competency Goals||CG 1, CG 2|
|Literature||Gole, W. J., and P. J. Hilger (2009): Due Diligence – An M&A Value Creation Approach, Hoboken, NJ u.a. : Wiley. ISBN: 9780470375907.|
|Course outline||– Private Equity – The rise of an asset class|
– Private Equity fundamentals
– Private Equity value chain & creation
– Valuation and Leveraged Buyout mechanics
– Commercial Due Diligence
– Value Creation & Portfolio Strategy
– Investment style: Infrastructure
– Sustaining momentum & Exit